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Inform the customer of the benefits of getting your company’s quote. When trying to get the attention of a new potential customer, most buyers are complacent and get used to their current vendor. You must tell these new potential customers that getting your company’s quote will only help them regardless whether they pick you or not.
Benefits of getting a quote from your firm:
- If your quote is relatively close, the company will be assured that they are currently getting a competitive price in the market.
- The buyer can take a lower bid and ask the current vendor to try to match or at least give in on the price difference. The worst that happens is the vendor declines. Once that occurs, the customer then may be able to negotiate other items in dispute since the vendor will feel compelled to say ‘yes’ at some point.
- The buyer decides to accept your company’s quote and then goes on to save money, something the buyer reminds his boss about at raise time.
- Your firm states in the bid language there are no additional fees involved except those initiated by the buyer. The buyer who has been charged extra fees consistently by the old vendor now becomes more intelligent about the marketplace, starts to ask questions and will most likely be apt to consider your firm in the future if not now.
- Your firm shrewdly submits two costs. You present one cost with the stipulated materials per the customer’s specifications. You then qualify your next bid which is substantially cheaper substituting other less costly materials. This will cause the buyer and his engineering team to discuss these potential cost savings and question their approach. Your action potentially provokes redesign and a material bottom line enhancement because you displayed options for your potential customer. Even if the option is denied, your firm now is regarded as sharp, aggressive and a positive influence on its customers.
- Your firm gives pricing for the product produced or service provided with and also without freight (customer pickup). The buyer’s current vendor charges a delivered charge and does not disclose the freight cost. If not considered by the buyer in the past, it will be now if the cost savings are substantial.
- Your firm gives a bid for the item exactly as shown on the blueprints provided and then another much lower cost for a product redesigned with costs taken out by your seasoned cost engineers who do this every day.
- Your firm shows the cost of the product with the buyer’s supplied material and the lower cost of the product with material your firm buys in volume coupled with volume discounts. He’s impressed and now a bit angry since his current vendor never offered this.
- Your firm presents a bid on a grid with multiple selections including a price for quantity of 100, 500 and 1000. The grid offers pricing with and without freight at each level as well as pricing with and without material at each of the levels you choose. The buyer now sees cost reduction potential and if nothing else demands it from his current vendor. You establish yourself through this bid as an excellent alternative vendor in the future.
- Your firm presents a bid and gives a price for all of the volume or 1/3 or ½ of the volume. When asked by the customer why the delineation, you indicate the customer should have alternative vendors which will keep the other in line. To get part of his work, indicate if he splits his current work among competing bidders, he will most likely get better service from both. Add when shaking his hand that competition is healthy for all parties.
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